The CITB levy is a statutory charge collected by the Construction Industry Training Board from employers in the construction industry, used to fund training grants and apprenticeships across the sector.

The levy applies to any employer that is engaged wholly or mainly in construction industry activities, meaning construction work accounts for more than 50% of its total employees' time (including labour-only subcontractors on contracts for services). Size of turnover is not the trigger: if construction is the majority activity and you have at least one worker, you are in scope.

The levy rates for the 2025 Levy (assessed spring 2026) and the 2026 Levy (assessed spring 2027) are:

  • 0.35% on PAYE payroll (gross wages paid to employees under PAYE).
  • 1.25% on net payments made to CIS subcontractors (the amount paid after CIS deductions, not the gross invoice value).
  • No levy on payments to gross-status CIS subcontractors (those paid at 0%).
  • No levy on payments to labour agencies.

There are two thresholds that reduce or eliminate the levy:

  • Small Business Exemption: if your total wage bill (PAYE plus net CIS payments) is under £150,000 a year, you pay no levy at all.
  • Small Business Reduction: if your total wage bill is between £150,000 and £499,999, you receive a 50% discount on the levy owed.

The levy is assessed annually by CITB based on your PAYE and CIS returns to HMRC. CITB cross-references its data with HMRC records, so under-declaring wages is not a viable route to avoid the charge.

CITB-registered employers can apply for training grants to offset some or all of the levy paid, covering courses from CSCS cards to apprenticeship top-ups. Employers who pay the levy but do not claim grants are effectively subsidising training across the industry. Claiming grants is not automatic: applications must be made through the CITB portal. Source: citb.co.uk/levy/what-you-pay-and-why (verified 2026-06-12).

For broader CIS expenses and tax deductions available to construction businesses, see our guide to allowable expenses for CIS subcontractors.